Silver is showing no sign of shaking itself out of its narrow range it has been in so far in 2023 with the price continuing to trade either side of $24 an ounce.
In fact, far from 2023 proving to be the year in which silver raced upwards to challenge first the high of 2022 and even potentially up towards $30 an ounce, the price is currently on a slight downtrend, reflecting a similar consolidation for silver’s precious metal peer, gold.
While gold looks to be at the top end of its range, silver feels some way off it given the strength of industrial demand, with the metal a key component within the energy transition, and the fact the bearish factors that kept its price under pressure for so much of 2022 are starting to unwind.
Silver is still waiting for the catalyst and that may yet come at the end of the month when the Federal Reserve meets. Assuming the Fed only hikes its benchmark rates by 25 basis points, as is widely expected, then that may finally give silver investors the assurance that the worst of the Fed’s hikes are behind us and the focus can return to the metal’s bullish fundamental case.
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